"The ability to secure derivatives against physical assets will make it far easier for property companies to use derivatives to hedge systemic risks within their portfolio. If the E.U. OTC reform proposals bar this it is likely property derivatives will never become widely used as a hedging tool."

GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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"The ability to secure derivatives against physical assets will make it far easier for property companies to use derivatives to hedge systemic risks within their portfolio. If the E.U. OTC reform proposals bar this it is likely property derivatives will never become widely used as a hedging tool."

--Bill Bartram, director of property risk at J.C. Rathbone Associates in London, on the potential impact OTC regulation could have on the property derivatives market.

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